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Pages:
1 page/≈275 words
Sources:
1 Source
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
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MS Word
Date:
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$ 5.27
Topic:

Advantages and Disadvantages of Different Types of Trust

Essay Instructions:

Please prepare a response post to the below, fully fleshing out the advantages and disadvantages of each type of the the following types of trusts -- Simple, testamentary, complex, irrevocable, and inter vivos.
A trust is a fiduciary relationship in which one individual (trustor) grants another individual (trustee) the right to hold title to property and assets for the benefit of another (beneficiary) (Kagan, 2022). An inter vivos trust is a trust that is created while the grantor is living (IRS, 2021). A inter vivos trust can be:
Revocable – it can be changed at any time by the grantor after it is signed (IRC § 676)
Irrevocable – it cannot be changed once it is signed
There are some advantages of an inter vivos trust like avoiding probate, naming a durable power of attorney in case of incapacity, assets are distributed as you wish, privacy so your estate will not be public record, and asset protection. There are some disadvantages to an inter vivos trust like paperwork because all the assets listed in the trust document must be transferred over to the trust, record-keeping can be cumbersome if you transfer a lot of property in and out of the trust, transfer taxes could be imposed depending on the state, refinancing of property in the trust may pose some difficulties and the cutoff time for creditors is unlimited for making a claim (www(dot)nolo(dot)com).

Essay Sample Content Preview:

Response Post
Author’s Name
Institutional Affiliation
Course Code and Name
Professor’s Name
Date
Response Post
Although my peer has done good work, I cannot see the merits and demerits of simple, complex, and testamentary types of trust. A testamentary trust is usually created under the last will and is met after the testator’s death (IRS.gov, 2021). That is the point when the assets and properties pass to the beneficiary. Simple trust is income that should be distributed. I agree with my colleague that inter vivos trust is created when the grantor is living. The most significant thing about a revocable inter vivos is that it can be altered after being signed by the grantor. On the contrary, the demerit of irre...
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